Related Content

After the Crisis, Small Banks Still Owe Taxpayers

9/24/2013 10:40AM

Five years after the financial crisis, there are still a handful of smaller banks that owe the government money under the TARP program. Michael Crittenden explains why a short-term lifeline has turned into a long-term source of capital.

This transcript has been automatically generated and may not be 100% accurate.

... in ... five years after the financial crisis ... are still a handful of smaller banks owe the government money that our program ... Michael Crittenden explains why the short term like Butler lifeline ... turned into a long-term lease for some companies ... Michael thanks for coming on today spend a few minutes appreciated ... always good to know ... so ... while there's still banks that own roughly three billion dollars to the government five years later ... for some people attrition is probably a great question ... aam I mean that the term Paramus envisioned to potentially last quite long time so it's not ... a oh unusual that these banks are some program I think what's unusual is that ... you know ... everyone thinks about the TARP program is going up again beat Wall Street guys ... when you really does lead to hundreds of ... smaller banks and all of those guys aren't as in good condition is the bigger ... bigger peers and so these guys is first up for a ... cause that there were talk to many names that we would know off hand ... not really allow this to serve smaller TD Bank's local banks ... on you know these guys ... get it it's it's rough going in that interest rates are low they are having trouble landing in awe so full of commercial real estate exposure ... so I mean you're seeing its ... Serb nationalists are financial crisis yet it takes awhile for for banks and obviously consumers to fix their balance sheets and ... you know that these guys you know they have the stigma of having to government funds ... now is that I come from all that the fact that these banks are still in the program ... they try to get them ... the program is earning plan for ending this ... war all are or are they is the soul of the Senate ... voted ... as it has been ... a lot recently in the five year anniversary ... on don't really comparable ... aam if you talk to people of treasure in their very emphatic they don't want the government involved the financial system ... anymore than the financial system once government in the vaults ... on so they're trying to use this as is possible in many cases we're seeing is that ... you know they're auctioning is often not making that ... awful mess that aam ... the goal is to make a profit of one of its bailout for its because im begin ... begun to spin back so quickly in the way they structure the deals ... on some of these deals in the government's losing money because they display get out of the school was asked ... when is the option offer you try not to actually taking the banks under one like the FDIC program ... and selling the bank's or they auction off the bonds will we all get that that the Related's ... Dutch auctions ... of the war and stable the shares they hold ... on to make you a fairly regular every every every week or so you get a release that referees were ... you know ... were auctioned off a ... what treasures that I mean ... a Serbian unit ... they did the best banks in best condition in eleven starts to repay ... aam in over ... a few years ago he said now it's true Gain Downs the folks who were were struggling to serve reach to repay ... him to raise the capital it's hard to they'll have access to capital markets and with that ... in a JPMorgan BankAmerica